Air NZ Investor Update – June 2024 AMENDED FOOTNOTES

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Contents
• June 2024 traffic highlights and commentary
• Operating statistics table
• Recent market announcements and media releases


June 2024 Commentary
• Group capacity was down 4.2% in June compared to the same month last year. May and June
typically represent the airlines two lowest demand months except in FY23 when the airline
experienced exceptionally high demand as part of the initial post COVID recovery period. Long-
haul international ASKs decreased 5.1%, short-haul international ASKs decreased 2.6%, and
domestic ASKs were down 4.0% compared to last year.

• The decline in Group YTD RASK compared to the prior year was driven by the significant mix
change for the 2024 financial year to date, whereby long-haul capacity growth and load factors
were substantially higher relative to short-haul.

• Short-haul YTD RASK, which includes the Domestic, Tasman and Pacific islands networks
declined 6.0% compared to last year. This was driven by a Tasman and Pacific islands YTD
RASK decline, offset by a small increase in Domestic YTD RASK.

• Long-haul YTD RASK declined 11.1% driven by both North American and to a lesser extent,
Asian routes. Intense international competition features heavily in the current trading
environment, particular for North America. US competitors have not yet returned to China at
scale, and for now have directed some of that additional capacity to the New Zealand market,
putting pressure on yields.

• As previously disclosed in a market announcement dated 22 April 2024, Covid-credit related
breakage will be applied to passenger revenue for the 2024 financial year. This includes the
$45 million already recognised in the 2024 interim financial statements released to the market
in February 2024. It also includes a further amount, in line with the estimate provided in the April
market announcement, which will be disclosed when the airline releases its annual results on
29 August 2024. These credits are not allocated to a particular route group in this document
and therefore are not included within the June YTD operating statistics information provided on
page 2.














5 August 2024

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June 2024 highlights – amended footnotes


















Group traffic summary
JUNE
FINANCIAL YTD
FY24 FY23% *++2024
2023% *+
Passengers carried (000)1,4281,381(2.5%)
16,461
15,7764.1%
Revenue Passenger Kilometres(m)3,0502,931(1.9%)
34,286
29,03217.8%
Available Seat Kilometres (m)3,8013,743(4.2%)
42,070
34,28122.4%
Passenger Load Factor (%)
80.2%78.3%1.9 pts
81.5%84.7%
(3.2 pts)
Year-to-date RASK
1
vs 2023vs 2023
Group
(10.9%)(11.2%)
Short Haul(6.0%)(6.0%)
Long Haul(10.4%)(11.1%)
% change in reported
RASK (incl. FX)
% change in reported
RASK (excl. FX)
1 Reported RASK (unit passenger revenue per available seat kilometre) is inclusive of foreign currency impact,
and underlying RASK excludes foreign currency impact.
* % change is based on numbers prior to rounding
Please note that the available seat k ilometre (capacity) numbers included in the tables within this disclosure
do not include any cargo-only flights. This is because these capacity numbers are used to calculate
passenger load factors and passenger RASK
+ The year to date percentage movements have been adjusted on a daily weighted average basis. The adjustment takes
into account the difference in days for the accounting month of July 2022 (31 days) compared with July 2023 (30 days)
and June 2023 (33 days) compared w ith June 2024 (35 days). This is because Air New Zealand operates on a 4,4,5
accounting calendar but closes the annual accounts on 30 June.
++ The month percentage movements have been adjusted on a daily weighted average basis. The adjustment
takes into account the difference in days for the accounting month of June 2023 (33 days) compared with June
2024 (35 days). This is because Air New Zealand operates on a 4,4,5 accounting calendar but closes the annual
accounts on 30 June.

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Operating statistics table – amended footnotes


GroupJUNEFINANCIAL YTD
FY24 FY23% *++20242023% *+
Passengers carried (000)1,4281,381(2.5%)16,46115,7764.1%
Revenue Passenger Kilometres(m)3,0502,931(1.9%)34,28629,03217.8%
Available Seat Kilometres (m)3,8013,743(4.2%)42,07034,28122.4%
Passenger Load Factor (%)80.2%78.3%1.9 pts81.5%84.7%(3.2 pts)
Short Haul TotalJUNEFINANCIAL YTD
FY24 FY23% *++20242023% *+
Passengers carried (000)1,2491,208(2.5%)14,53314,2981.4%
Revenue Passenger Kilometres(m)1,3391,2372.0%15,40314,3866.8%
Available Seat Kilometres (m)1,6321,588(3.1%)18,27716,9217.7%
Passenger Load Factor (%)82.0%77.9%4.1 pts84.3%85.0%(0.7 pts)
DomesticJUNEFINANCIAL YTD
FY24 FY23% *++20242023% *+
Passengers carried (000)914907(5.0%)10,72210,946(2.3%)
Revenue Passenger Kilometres(m)465460(4.8%)5,5725,679(2.2%)
Available Seat Kilometres (m)590579(4.0%)6,6216,685(1.2%)
Passenger Load Factor (%)78.8%79.5%(0.7 pts)84.2%84.9%(0.7 pts)
Tasman / PacificJUNEFINANCIAL YTD
FY24 FY23% *++20242023% *+
Passengers carried (000)3353015.0%3,8113,35213.4%
Revenue Passenger Kilometres(m)8747776.1%9,8318,70712.6%
Available Seat Kilometres (m)1,0421,009(2.6%)11,65610,23613.6%
Passenger Load Factor (%)83.9%77.0%6.9 pts84.3%85.1%(0.8 pts)
Long Haul TotalJUNEFINANCIAL YTD
FY24 FY23% *++20242023% *+
Passengers carried (000)179173(2.4%)1,9281,47830.1%
Revenue Passenger Kilometres(m)1,7111,694(4.8%)18,88314,64628.6%
Available Seat Kilometres (m)2,1682,154(5.1%)23,79317,35936.7%
Passenger Load Factor (%)78.9%78.7%0.2 pts79.4%84.4%(5.0 pts)
As i aJUNEFINANCIAL YTD
FY24 FY23% *++20242023% *+
Passengers carried (000)9993(0.4%)1,02669746.9%
Revenue Passenger Kilometres(m)832809(3.0%)8,9676,12845.9%
Available Seat Kilometres (m)1,0781,082(6.0%)10,9127,42346.6%
Passenger Load Factor (%)77.2%74.8%2.4 pts82.2%82.6%(0.4 pts)
AmericasJUNEFINANCIAL YTD
FY24 FY23% *++20242023% *+
Passengers carried (000)8080(4.9%)90278115.2%
Revenue Passenger Kilometres(m)879885(6.4%)9,9168,51816.1%
Available Seat Kilometres (m)1,0901,072(4.2%)12,8819,93629.3%
Passenger Load Factor (%)80.6%82.6%(2.0 pts)77.0%85.7%(8.7 pts)
* % change is based on numbers prior to rounding
+ The year to date percentage movements have been adjusted on a daily weighted average basis. The adjustment takes into account the difference in days for the
accounting month of July 2022 (31 days) compared with July 2023 (30 days) and June 2023 (33 days) compared w ith June 2024 (35 days). This is because Air
New Zealand operates on a 4,4,5 accounting calendar but closes the annual accounts on 30 June.
Air New Zealand operates primarily in one segment, its primary business being the transportation of passengers and cargo on an integrated network of scheduled
airline services to, from and within New Zealand. The following operational data and statistics is additional supplementary information only.
++ The month percentage movements have been adjusted on a daily weighted average basis. The adjustment takes into account the difference in
days for the accounting month of June 2023 (33 days) compared with June 2024 (35 days). This is because Air New Zealand operates on a 4,4,5
accounting calendar but closes the annual accounts on 30 June.

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Market announcements
(during the period 27 June 2024 to 1 August 2024)
Air New Zealand to withdraw from Science Based Target initiative 30 July 2024

After careful consideration, Air New Zealand is removing its 2030 science based carbon intensity
reduction target and will withdraw from the Science Based Targets initiative.  
Many of the levers needed to meet the target, including the availability of new aircraft, the affordability
and availability of alternative jet fuels, and global and domestic regulatory and policy support, are outside
the airline’s direct control and remain challenging.
Air New Zealand Chief Executive Officer, Greg Foran says, “In recent months, and more so in the last
few weeks, it has also become apparent that potential delays to our fleet renewal plan pose an additional
risk to the target’s achievability. It is possible the airline may need to retain its existing fleet for longer
than planned due to global manufacturing and supply chain issues that could potentially slow the
introduction of newer, more fuel-efficient aircraft into the fleet. As such and given so many levers needed
to meet the target are outside our control, the decision has been made to retract the 2030 target and
withdraw from the SBTi network immediately.
Work has begun to consider a new near-term carbon emissions reduction target that could better reflect
the challenges relating to aircraft and alternative jet fuel availability within the industry.
Air New Zealand Chair, Dame Therese Walsh says, “Air New Zealand remains committed to reaching
its 2050 net zero carbon emissions target. Our work to transition away from fossil fuels continues, as
does our advocacy for the global and domestic regulatory and policy settings that will help facilitate Air
New Zealand, and the wider aviation system in New Zealand, to do its part to mitigate climate change
risks.”

Air New Zealand updates on director resignation 26 July 2024

Air New Zealand director Paul Goulter has advised the Chair that he will retire from the board due to
increasing workload and commitments in his role as CEO of the NZ Nurses Organisation.
He will retire at this year’s Annual Shareholders Meeting to be held in Christchurch on 26 September
2024.
Chair Dame Therese Walsh said that Paul has served the airline for nearly 3 years and will not seek re-
election at this year’s ASM. She noted that Paul has made a significant contribution in his time as a
director. His deep industrial relations experience and insights have been invaluable, particularly in the
People, Remuneration and Diversity Committee as well as through the complexities of managing the
airline’s diverse workforce over the last few years.
Dame Therese thanked Paul for his commitment and contribution to the airline. In due course Air New
Zealand will advise a replacement director for Goulter.

Annual Meeting and Nomination of Directors 12 July 2024

Air New Zealand Limited’s Annual Shareholders' Meeting will be held in Christchurch at 2pm on
Thursday 26 September 2024 in the Tekapo Room, Novotel Hotel, 30 Durey Road, Christchurch.
In additional to the physical meeting, Air New Zealand will also offer shareholders the choice to attend
and participate in the meeting via an online platform.

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The Notice of Meeting (which will be emailed or sent to shareholders after the 2024 Annual Results to
be released on Thursday 29 August 2024) will contain details of how to participate online.
Nomination of Directors
Air New Zealand advises that the period for nominations for the position of director opens today and will
close at 5.00pm on Friday 26 July 2024.
Nominations must be:
(a) made in writing;
(b) may only be made by a security holder entitled to attend and vote at the Annual Meeting;
(c) accompanied by the written consent of the person being nominated as well as their brief biographical
details (for inclusion in the Notice of Meeting); and
(d) be addressed to the Company Secretary at Air New Zealand, Private Bag 92007, Auckland 1142.
This announcement is made pursuant to Listing Rule 2.3.2.

Media Releases
(during the period 27 May 2024 to 1 August 2024)
Astounding response to the Mangōpare Air New Zealand Pilot Cadetship 18 July 2024
The dream of flying has inspired nearly 2,000 to apply for the Mangōpare Air New Zealand Pilot
Cadetship, demonstrating the strong desire of Kiwis to pursue a career as a pilot.

The cadetship, a first for Air New Zealand, is designed to be an all-inclusive training programme that
accelerates the journey to becoming a fully qualified ATR pilot from the typical 24-36 months to
approximately 14 months.

Applications closed last week, with thousands of Kiwis applying. All applicants who met the requirements
were invited to complete various aptitude tests and interviews online.

Air New Zealand Chief Operational Integrity and Safety Officer Captain David Morgan said the airline is
encouraged by the enthusiastic response from aspiring aviators interested in the Mangōpare Air New
Zealand Pilot Cadetship.

“The response to the cadetship has been astounding, and we have been impressed with the incredibly
high calibre of applicants from across Aotearoa. We’re excited to have a new generation of pilots to
connect New Zealanders with each other and the world.

“We always knew there would be plenty of Kiwis out there who wanted to pursue a career as a pilot but
who might have needed a little bit of help to achieve their dream, and it is a privilege to play a supporting
role in that.

"It has been incredibly inspiring to see applications from a wide range of New Zealanders, all of whom
come with their own unique stories and dreams about why they want to be a pilot for Air New Zealand.

“Applications have now been reviewed, with a shortlist of prospective cadets being invited to in-person
interviews with our selection panel in Auckland from this week. Everything is on track to have the first
cohort commencing their training in Arizona from September,” Captain Morgan said.

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Air New Zealand has also received positive engagement through the Expression of Interest (EOI)
process, aimed at identifying New Zealand-based training organisations to deliver a fully integrated pilot
training cadetship aligned with our turboprop operations.
“We look forward to evaluating the EOI responses over the coming months, with the intention of
establishing a similar training programme with New Zealand-based schools in the future,” Captain
Morgan said.
Air New Zealand releases 750,000 domestic fares under $100 17 July 2024
Air New Zealand has today launched its biggest domestic sale of the year with three-quarters of a million
seats on sale for under $100.

The 750,000 fares will start from $59 one way and will be available from 7pm tonight until midnight on
24 July.

Air New Zealand General Manager Domestic Scott Carr says those looking for a getaway are spoilt with
choice with all 20 of the airline’s domestic destinations on sale.

“Whether it’s a romantic weekend getaway to Invercargill, or cheeky date night in Palmerston North –
we’re challenging Kiwis to think outside the box and visit a new destination this year.

“We’ve made sure there’s a selection of fares available between now and early 2025 to ensure those
who aren’t so keen on a winter getaway can book for a summer escape”.

Domestic airlines welcome Commerce Commission’s findings; 17 July 2024
shows need for urgent inquiry into airport regulation
•
Joint statement from domestic airlines Air Chathams, Air New Zealand, Barrier Air and Jetstar
• Commerce Commission report into airport charges highlights Auckland International Airport
Limited (AIAL) pricing is costing Kiwis
• Domestic airlines call for AIAL to right-size the redevelopment plan
• Makes the case for the Government to commence independent inquiry into airport regulation
Domestic airlines operating from Auckland Airport have today welcomed the draft findings of the
Commerce Commission’s report on the latest Price Setting Event 4 (PSE4, which covers the period 2023
to 2027). Price setting events are the process by which the three major airports in New Zealand set their
prices.

Today’s report shows that Auckland Airport is targeting excess profits between $193.4 million and $226.5
million over PSE4. The Commerce Commission previously found that Auckland Airport was targeting
excess profits of $53m in PSE3 (2018 to 2022). When airports make excessive profits, it’s ultimately
airline passengers who are paying.

Domestic carriers have expressed concern for some time about the scale and cost of the current
Auckland Airport redevelopment, which would ultimately leave the travelling public footing the bill and
domestic travel becoming less affordable for many.

While the Commerce Commission’s draft suggests that the investment in Auckland Airport’s
development may be appropriate, this is not a view shared by many of AIAL’s aeronautical partners and
that will be a strong feature of the response to this draft report.

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Domestic carriers believe the current regulatory regime is not in the best interests of New Zealand
consumers. AIAL is currently only required to consult with airlines, but it doesn’t need to reach any
agreement.

Domestic airlines are calling on the Government to urgently commission an independent inquiry into
airport regulation. This can be conducted under s56G of the Commerce Act, at the Minister’s direction.

The Commission has a menu of regulatory options to keep regulated airports under control. These
include steps that require airports to negotiate with their airline customers on a commercial basis, go to
arbitration if that fails, or the regulator can set the price and quality of their service.

These options do not require new laws to be passed, so it’s not a case of more red tape or government
intervention - airlines are simply asking the Commission to use its existing inquiry power to determine
which regulatory option will deliver more control over airports and, therefore, better value for consumers.

Air Chatham's Chief Operating Officer Duane Emeny said, “An inquiry into airport regulation is a crucial
opportunity to establish a regulatory environment that more effectively protects consumers and ensures
that airport investments are made responsibly and affordably.

Air New Zealand Chief Executive Greg Foran said, “New Zealanders are in the midst of a cost of living
crisis and businesses are cutting costs, the last thing they need is for more costs to be piled onto travel
because Auckland Airport isn’t acting in the best interests of New Zealanders.

“We agree some development is needed, but we’re ready to get back to the table with Auckland Airport
to ensure that the airport has an affordable and enduring plan that helps connect New Zealanders with
each other and the world. The right regulatory framework will allow us to do that.”

Barrier Air CEO Grant Bacon said, “The currently proposed redevelopment at Auckland Airport still has
turboprops in another terminal, meaning smaller carriers and regional passengers need to walk to
another terminal and get very little from the large-scale development, but we’ll still be paying for it. There
is also no new runway factored in to the large spend.”
Jetstar Group CEO Stephanie Tully said, “As a low-cost carrier, Auckland Airport’s proposed
redevelopment would result in steep increases to passenger charges, impacting demand for air travel
and our ability to offer the low fares we know Kiwis really value.”